USUALLY ASKED QUESTIONS
What is your success rate?
Successful recovery depends on a number of factors – the age of the debt; the quality of the service performed, accessibility and the financial situation of the debtor. What is crucial is whether the debtor is an individual or a corporation. There is also a need to know if the debt is backed by a written agreement or guarantee. Before accepting the submission we would carefully assess the situation (and your debtor invoice) before taking it on. If we confirm acceptance, it is because we believe it has merit. Our field agents do not like their time being wasted. Our success rate, incidentally, is 79%
How long does the process take?
Once we confirm acceptance to your submission we move right into action. Our modus operandi is not fully disclosed. What we can tell you is that we don’t use telephone centres nor bother to issue copious demand letters. Our field agents are trained to bring home the debt in the shortest possible timeframe. As a rule – 3 -4 weeks is the norm. Certainly by week four we can generally gage as to the possibilities.
Do you require up-front court/legal costs?
No! We endeavour to avoid the courts and its costs. Our intention is to collect the debt by our own methods and procedures. If the only option is court we would consult you prior to any commitment in that direction. If we do recommend court we will provide the cost for your consideration first.
Should I just proceed to court now?
No! Court actions are not recommended as it may or may not run in your favour. Paradoxically, we receive calls on a weekly basis from people that have successfully won court judgement. These same people have rung the court to ask as to how they get their money now they have won. The court then advise them to contact a debt collector. Many people do not realise that the courts do not go out and collect for them. We follow up on judgments by proceeding with the seizure & sale of goods; means inquiry and/or garnish of wages.
What if the debtor disappears?
We are members to a wide range of databases. These include credit reporting agencies; national credit databases and national tenancy databases. We can and do place alerts on debtors in order to locate them. Skipping interstate to avoid a debt is no longer a sound option for the debtor these days. We will be tracking them down. The same applies with those debtors going overseas.
Are there fee variances and additional charges?
Our fee remains as stated in the agreed submission. It does not vary. We are sometimes asked if our % fee is applied to the list debt amount or the achieved figure. The fee applies only to what is achieved; not on what was embarked upon. Sometimes debts are negotiated and our fee applies only on that. If we recommend court action we will provide the cost for your decision before proceeding.
What if the debtor agrees to a payment arrangement?
A payment arrangement is sometimes an option for the debtor with financial difficulties. We will monitor the payments on a weekly/fortnightly/monthly basis – to our trust account. The funds are disbursed (EFT) at month-end (less our % fee) directly into your nominated bank account. At the same time you are issued with a statement providing full details on the collection to-date.
If I decide to take it to court, which court would it be?
A court claim (being your debt amount) under $75,000 is heard in the Magistrates Court. There are two types of claims in the Magistrates Court: A Minor Case Claim (to $10,000) and a General Procedure Claim ($10,000 to $75,000). Both are service by summons. Claims $75,000 to $250,000 are service by writ and are handled by the District Court. Claims over $250,000 are heard in the Supreme Court – also with service by writ.